The Impact of Wind Power Projects on Residential Property Values ...

Table 27: List <strong>of</strong> Variables Included in the Repeat Sales Model
Variable Name Description Type Sign Freq. Mean Std. Dev. Min. Max.
SalePrice96_Pre
<strong>The</strong> Sale Price (adjusted for inflation into 1996 dollars) <strong>of</strong>
the home as <strong>of</strong> the first time it had sold
C + 354 $ 70,483 $ 37,798 $ 13,411 $ 291,499
SalePrice96_Pre_Sqr SalePrice96_Pre Squared (shown in millions) C – 354 $ 6,393 $ 8,258 $ 180 $ 84,972
Acres Number <strong>of</strong> Acres that sold with the residence C + 354 0.67 1.34 0.07 10.96
Sqft_1000
No View
Minor View
Moderate View
Substantial/Extreme View
Less than 1 Mile
Between 1 and 3 Miles
Between 3 and 5 Miles
Number <strong>of</strong> square feet <strong>of</strong> finished above ground living area
(in 1000s)
If the home had no view <strong>of</strong> the turbines when it sold for the
second time (Yes = 1, No = 0)
If the home had a Minor View <strong>of</strong> the turbines when it sold
for the second time (Yes = 1, No = 0)
If the home had a Moderate View <strong>of</strong> the turbines when it
sold for the second time (Yes = 1, No = 0)
If the home had a Substantial or Extreme View <strong>of</strong> the
turbines when it sold for the second time (Yes = 1, No = 0)
If the home was within 1 mile (5280 feet) <strong>of</strong> the turbines
when it sold for the second time (Yes = 1, No = 0)
If the home was between 1 and 3 miles <strong>of</strong> the turbines when
it sold for the second time (Yes = 1, No = 0)
If the home was between 3 and 5 miles <strong>of</strong> the turbines when
it sold for the second time (Yes = 1, No = 0)
C + 354 1.58 0.56 0.59 4.06
Omitted n/a 305 0.86 0.35 0 1
OC
OC
OC
OC
OC
OC
_
_
_
_
_
_
35 0.10 0.30 0 1
5 0.01 0.12 0 1
9 0.03 0.12 0 1
14 0.02 0.13 0 1
199 0.56 0.50 0 1
116 0.33 0.47 0 1
If the home was outside 5 miles <strong>of</strong> the turbines when it sold
Outside 5 Miles
Omitted n/a 25 0.07 0.26 0 1
for the second time (Yes = 1, No = 0)
"C" Continuous, "OC" Ordered Categorical (1 = yes, 0 = no) values are interpreted in relation to the "Omitted" category. This table does not include the study area fixed
effects variables that are included in the model (e.g., WAOR, TXHC, NYMC). <strong>The</strong> reference case for these variables is the WAOR study area.
6.3. Model Form
To investigate the presence <strong>of</strong> Area, Scenic Vista, and Nuisance Stigmas, the adjusted annual
appreciation rate (AAR) is calculated for the 354 sales pairs in the manner described in equation
(10), using inflation adjusted sales prices. <strong>The</strong> following model is then estimated:
(11)
AAR S X VIEW DISTANCE
0 1 2 3 4
s k v d
where
AAR represents the inflation-adjusted Annual Appreciation Rate for repeat sales,
S is the vector <strong>of</strong> s Study Area fixed effects variables (e.g., WAOR, OKCC, etc.),
X is a vector <strong>of</strong> k home, site and sale characteristics (e.g., acres, square feet, original sales price),
VIEW is a vector <strong>of</strong> v categorical view variables (e.g., MINOR, MODERATE, etc.),
DISTANCE is a vector <strong>of</strong> d categorical distance variables (e.g., less than one mile, between one
and three miles, etc.),
0 is the constant or intercept across the full sample,
1 is a vector <strong>of</strong> s parameter estimates for the study area fixed effects as compared to sales that
occurred in the WAOR study area,
2 is a vector <strong>of</strong> k parameter estimates for the home, site, and sale characteristics,
3 is a vector <strong>of</strong> v parameter estimates for the VIEW variables as compared to transactions <strong>of</strong>
homes with no view <strong>of</strong> the turbines,
4 is a vector <strong>of</strong> d parameter estimates for the DISTANCE variables as compared to transactions
<strong>of</strong> homes outside <strong>of</strong> five miles, and
is a random disturbance term.
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